Company Interview / Tech stocks to counter the selloff

Key points:

Recent tech selloff is seen as overdone, with AI infrastructure investment remaining strong AI adoption is accelerating, now reaching over 21% of the global population daily Companies like Nvidia, TSMC, Broadcom, and upcoming Firmus Technologies are highlighted as attractive opportunities Ongoing risks include adoption rates, project outcomes, and maintaining valuations

Alex Pikoulas of Munjarra Capital shares the view that the recent tech sector volatility, described as a “SaaS apocalypse,” has been somewhat overdone, especially for software companies and the original cohort of AI leaders. Pikoulas points to the ongoing robust capital expenditure in AI infrastructure as a compelling backdrop, referencing Morgan Stanley forecasts of US$3 trillion in AI infrastructure spending by 2028. While AI stocks like Nvidia (NASDAQ:NVDA), TSMC (NYSE:TSM), and Broadcom (NASDAQ:AVGO) have not yet responded to these shifting narratives, Pikoulas argues these names now offer attractive valuations given their sideways trading and improved earnings outlooks.

Pikoulas highlights the rapid operational adoption of AI, with 21% of the global population now utilising AI daily and ChatGPT reaching 700 million daily active users. Recent workforce cuts announced by Meta (NASDAQ:META), WiseTech Global (ASX:WTC), Block (ASX:XYZ), and Atlassian (NASDAQ:TEAM) are seen as directly tied to AI-driven efficiencies, resulting in money flowing to the AI sector. Pikoulas sees further strong results ahead for these companies as AI integration deepens.

Risks remain, particularly around continued adoption, successful delivery for businesses, and maintaining reasonable valuations. Pikoulas indicates Munjarra Capital is active across listed equities, private opportunities such as Firmus Technologies—expected to IPO in Australia this year—and specialist AI-focused long/short funds.